Result: slightly less global paper money…and a slightly lower gold price. Seems logical. Sensible. Gold is the world’s alternative money. That and Bitcoin. The supply of paper money goes up…and you get more paper for each unit of gold. That’s just what you’d expect.

Or, looking at the big picture, the central banks of the world have decided that money printing is the solution to low growth and high unemployment. Unless something happens to stop them, they’ll probably keep increasing the money supply. And the price of gold will probably keep going up.

But we’re still laughing at the Japanese…and Ben Bernanke…and economists and central bankers everywhere.

And at ourselves! We all do the damnedest things.

Remember the dotcom bubble? People thought they could get rich by buying companies with no earnings…no assets…and no business plan that had ever been tested. They invested billions of dollars in these companies.

And when we pointed out that the whole thing was loony…they said we ‘didn’t get it.’

As it turned out, we were happy not to get it.

Again, we didn’t get it. How could an inanimate object…that needed constant maintenance and attention…increase your wealth? Houses were consumer items…not capital investments.

And again, it turned out that not getting it was a big advantage. So you’re probably wondering…what is it that we don’t get now?

We’ll tell you. We don’t get how printing money can make people wealthier. It never did in the past. Instead, it just led to higher inflation, bankruptcies, riots, revolutions…and disappointment.

Not that we have a closed mind about it. If someone could explain how printing up pieces of paper makes us more prosperous we’d be all for it. We’d want more of it. Heck, if one or two trillion makes you wealthier…why not print up ten quazillion?

Wait a minute. Didn’t Argentina try that in the ‘80s? Didn’t Brazil give it a whirl in the ‘90s… and Zimbabwe in the ‘00s?

We don’t remember any of them getting richer. Instead, they got poorer. So, what’s the magic that Ben Bernanke and the Japanese have discovered? What’s the secret?

Why Interest Rates Could Stay Low for the 21st Century… and How YOU Can Profit

Will Australian interest rates hit 0% in the next couple of years? If controversial economist Phillip J Anderson is correct… super–low interest rates could be here for the next century. In this special investor report you’ll learn how you can take advantage of low interest rates and potentially make a fortune over the coming decades.

Download this free report now and discover:

How to Boost Your Wealth Four Ways in a Low Interest Rate World: Inflation is your biggest enemy when interest rates are low. Phil reveals his four–pronged strategy to overcome this… and shows you where to profitably park your cash in the coming decades.

How the ‘Victorian Equilibrium’ Can Make You Rich: What if you could accurately predict where interest rates will travel in the future? You’d know the best time to lock–in rates on your mortgage repayments and save bucket loads of cash… or pick up the interest rate sensitive stocks most likely to rocket higher. As Phil reveals, if you understand the centuries old ‘Victorian Equilibrium’ discovered by an American history professor… you’ve got the next best thing to a crystal ball for interest rates.

Why this $402 Million Decision Signals Low Interest Rates: In October 2014, UK treasurer George Osborne announced Britain will pay back debt used to finance the First World War — 96 years after the first shot fired. Phil reveals what this landmark decision means for long term interest rates both in Australia and across the globe and how this could affect your long term investing habits.

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities.

Glad you are finding it funny Bill, just had a chap on CNBC from Goldmans and like me (and you) he couldn’t understand why gold was not going up with with the money supply. Didn’t even try. One way or another they will write about this for years to come. Trouble is, I dont think they will be writing about it because it worked! I dont think i will ever see the like again. They (the faceless central bankers) seem to have the world fooled, trouble is, every time i switch on the the business channel, there they all are… Read more »

some moron with a mike and a camera asks the chairSatan WTF he is thinking sending the FED minutes out in secret e-mails to people who can legally trade the information, BEFORE the public release.

and benzelbub responds: “This is what we call the trailing edge of the FED’s ‘openness’ campaign. The PPT gets it even earlier.”
~from deToke-deVille’s “Fascism in America”

Vote Up0Vote Down Reply

4 years 5 months ago

Letters will be edited for clarity, punctuation, spelling and length.
Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@marketsandmoney.com.au

How You Could Make a Small Fortune from These 10 ‘Hated’ Aussie Miners in 2017

If you think the days of making BIG money in mining stocks are gone…you’re dead wrong.

Our resident resources expert, Jason Stevenson, says there’s never been a better time than right now to spread a portion of your capital among some of the best quality miners on the Aussie market.

Download this free report now and discover the top 10 Aussie mining stocks that could make you a small fortune starting this year.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time

Testimonial

Just thought I would let you know that whilst I receive countless financial emails daily I view yours as something special. I am not looking for the same old humdrum I am looking for news that is out of left field. Now you guys would be off the planet if you went any further left but it is refreshingly different. I get through the humdrum first and get my mind sorted and save you for last as a check. It is certainly an insane moment in time but I am still finding investment opportunities. Thanks for your comments

If controversial economist, Phil Anderson is right… you could be looking at interest rates parked near zero for the next 100 years. But the question is… how do you grow your wealth in a low interest rate world? In this special report, Phil reveals a four–pronged investment strategy designed to achieve maximum profits no matter how low rates plunge.

To download this special investor report right now and take out a FREE subscription to Markets and Money. We’ll deliver our latest report to your inbox within the next five minutes.